Repeatedly overstating production makes the reported total diverge further from actual output. After several years, restoring an accurate figure can appear to require a large fall in production even when the original exaggerations were relatively small. This compounds the information problem in economic planning.
Notable Point · 1:22:57-1:23:14
Small production-reporting errors can become hard to correct
Repeated small exaggerations can leave production statistics so far from reality that correcting them looks like a collapse.